Pulse – Calgary flood affects commercial property as landlords cooperate with city to re-stabilize operations

The recent Calgary flood is one of the worst natural disasters to strike the city in quite some time. Property damage, in particular, has been extensive, a fact made clear by the landlords of various commercial and residential projects in the city. Bill Partridge, president of the Calgary Building Owners and Management Association, was able to provide some valuable insight into the matter. His first thought on the matter was that potentially threatening damage was avoided due to all buildings having emergency response plans.

Although it is clear that the damage done to buildings in the city was extensive, the exact measure of harm remains yet unknown. The city’s growing skyline of office buildings was particularly affected, and landlords still have limited access to them. Fear of structural damage and the growth of mould continue to dog the landlords.

Others have dealt with the duration and aftermath of the flood in different ways. David Routledge, vice president of real estate management for Oxford Properties, set up an incident report system and shut down various parts of Oxford’s five main towers in the city to minimize structural damage. He also participated with the city’s grid by grid restoration of power to major commercial centers.

Taken as a whole, it would seem that the damage could have been much worse. Two prominent Calgary REITs, Dundee and Artis, reported that none of their properties received extensive flooding and structural damage, and any stray water that had built up could be easily pumped out. They will be receiving assistance in this matter, as will various commercial property organizations, from the Calgary Municipal Land Corporation.

An analyst from BMO Nesbitt Burns stated that losses from the flood could easily reach the $5 billion mark. Although this disaster has been a severe blow for the Calgary commercial market, savvy emergency plans and efficient post-flood tactics will likely ensure that most of the damage is not of a lasting manner.